Can36L1


  • 1
  • A country's balance of payments accounts records all of the following items except ____________.

    taxes and transfer payments
    lending
    international trading
    borrowing


  • 2
  • The account that records the receipts from the exports of goods and services sold abroad, the payments for imports of goods and services from abroad, net interest paid abroad, and net transfers is the ______________.

    current account
    international capital account
    capital account
    official settlements account


  • 3
  • The capital account measures ________________________.

    foreign investment in Canada minus Canadian investment abroad
    capital used inside Canada but manufactured outside Canada
    capital produced outside of Canada minus capital produced inside Canada
    capital used outside Canada but manufactured inside Canada


  • 4
  • The official settlements account records the change in _________________.

    official Canadian reserves
    foreign investment and domestic investment
    the reserves held by chartered banks and the Bank of Canada
    international trade


  • 5
  • Official Canadian reserves are the _________________.

    government's holdings of foreign currency
    reserves of Canadian dollars held by the World Bank
    holdings of foreign currency by the public and the banks
    reserves of Canadian dollars held by foreign banks


  • 6
  • The value of net exports increases when the value of ______________________.

    imports of goods and services decrease
    exports of goods and services minus imports of goods and services decreases
    imports of goods and services increase
    exports of goods and services decrease


  • 7
  • A country that borrows more from the rest of the world than it lends to it in a year is called a _______, and a country that lends more to the rest of the world than it borrows from it in a year is called a _______.

    net borrower; net lender
    importer; exporter
    borrower; lender
    gross borrower; gross lender


  • 8
  • A country that during its entire history has borrowed more from the rest of the world than it has lent to it is a _______, and a country that during its entire history has invested more in the rest of the world than other countries have invested in it is a _______.

    debtor nation; creditor nation
    net borrower nation; net lender nation
    borrower nation; creditor nation
    debtor nation; investor nation


  • 9
  • The government sector surplus or deficit is equal to _____________________.

    net taxes minus government purchases of goods and services
    tariffs minus imports
    exports minus imports
    saving minus investment


  • 10
  • The private sector surplus or deficit is equal to ____________________.

    saving minus investment
    income minus consumption minus investment
    income minus consumption
    income minus consumption minus net taxes


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